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5 Reasons Why Fiverr is like the Current US Economy

By Edited Nov 13, 2013 2 1

Fiverr recently incorporated "levels" to distinguish beginning, great, and best sellers on their website. I have used Fiverr as a method for making money online, and have been highly successful. In fact, I am coming close to the $1,000 dollar mark in terms of my net earnings. With the focus on this new heirarchy on Fiverr, I was immediately reminded about the state of the current US economy. I have come to view Fiverr.com as a small representation of the larger picture that is the economy. In this article, I will be detailing 5 specific reasons that I have found Fiverr (and other similar websites) to be the perfect small scale representation of the current US economy in both positive and negative aspects.

The Fiverr Heirarchy of Sellers

There is no denying that the current US economy is very much heirarchical in nature. We have the poor, the working class, the middle-class, the upper-middle class, and those contained within the upper-class as well as within the top 1% percent of earners. Fiverr

has begun to place sellers into heirarchies, based on their performance and ultimately on their ability to make money. Like a good capitalist society, Fiverr allows the earners on their 2nd and 3rd level tiers to make more money (by the way of upsells); yet it also benefits the owners of Fiverr as well in that they earn more money in the process. It is a mutually beneficial system for those who become successful on the website, however the downfall of this is that many good gigs will go overlooked as buyers specifically seek out already well known and respected sellers in the level 2 and 3 tiers (like myself).

Like the current US economy, Fiverr is set up to let some people succeed; but undeniably other people will fail miserably. Perhaps this is a good thing, though I cannot be too sure.

Buyers Have the Final Say

I like to think of the website Fiverr as an online mall. So many products and services are available. You can window shop (I have found myself browsing the often amusing and talented services people provide), and get a good idea of what you can purchase for a mere $5 dollars. Of course, like the current US economy; there is a heavy dependence on people doing two specific things:

1. Spending money

2. Buying your specific products

When people become poor (as a result of low paying jobs and unemployment), then the amount of money being spent is significantly lower. This lowers the opportunities for people buying YOUR specific product, both on Fiverr and elsewhere.

Great Products Sell, Good Products Do NOT

In the United States, many people start their own businesses. Unfortunately, only a handful of these people are met with great success. In my local area, there were around 6 pizza places within about 7 miles from one another last year. Currently (as of January 2012), there are 2. I had the opportunity to eat at just about all of these locations, and quite enjoyed myself at each one. In short, each pizza business was what I would call "good." They served good products to their customers. But, what effects the ability to make it in the long run?

Going back to the Fiverr analogy, only great products sell. Hard economic times further the point that people will only purchase great products. We no longer have extra money to spend "testing out" other products, that might be good, might be horrible, or could be fantastic. Like the current US economy, Fiverr has uneniably created an environment where people feel entitled to more then they are receiving for $5 dollars. With this sense of entitlement, people will only settle for great products services; often forcing good products to be overlooked and ignored.

Fiverr Clone Websites Force Fiverr to be the Best or FAIL

Shortly after joining Fiverr, after hearing about it on television (specifically on the channel G4), I began to wonder if there were other websites similar to it where I could charge more money. After a brief search, I found quite a few of these; even several that are legitimate Fiverr clone websites to the degree that they have taken the exact same layout design.

This leads to my next point: the problem with having a great product or service is that, once it becomes known, many other people want to try and take YOUR idea to the bank. The competition then begins based on who offers the BEST service. Even though the original idea may be a great thing, those ideas need to be implemented very well; otherwise once they get loose, your product or service will fail to sell. In the current US economy, we see this concept played out quite frequently with a variety of businesses and services being offered. The new focus for many people is on being the "best" and not necessarily making a unique product.

Fortunately for Fiverr, they are well known and respected enough, and have a lot of viewers and buyers, that using their website continues to be a great thing for me and many other people.

Fiverr has Leaders that can Destroy or Revitalize Business

Like the current US economy and government syste, Fiverr has leaders (IE: site owners) who are in control of the system. While directly comparing Fiverr's site owners with the President of the United States (or any country) would be inaccurate, there are stark comparisons to be seen. The current US economy was for a brief moment revitalized by the trillion dollar stimulus package released shortly into President Obama's presidency. Of course, this did little real good for the economy, and it has ultimately places the economy into one of the worst economic depressions since the Great Depression.

Fiverr's leaders have the ability to destroy or revitalize their little economic microcosm. If they would do something to turn away great sellers (such as start withholding money from them), then the entire website would fail. Of course, the recent incorporation of seller levels has done quite a lot to make Fiverr even more appealing; so I do not expect destruction of this websites economy anytime in the near future.

As a well known and respected seller on Fiverr (with a 100% percent seller approval rating no less), I have found Fiverr to be a great study in a microcosm of the current US economy. It is amazing how simple economics can really be when viewed on a smaller scale. If you have any comments regarding how Fiverr relates to the economy, be sure to leave them below!

If you would like more information about Fiverr.com, be sure to check out these related articles: How to Make Money Using Fiverr and Make Money with Fiverr.



Jul 27, 2013 12:39pm
Wow! I never thought of it this way! Nice article!
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